Eaton Corp Net Income vs. Cash Flow From Operations
| 0Y3K Stock | 375.09 2.60 0.70% |
Net Income | First Reported 2012-12-31 | Previous Quarter 993 M | Current Value 1 B | Quarterly Volatility 221.2 M |
For Eaton Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Eaton Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Eaton Corp PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Eaton Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Eaton Corp PLC over time as well as its relative position and ranking within its peers.
Eaton |
Eaton Corp PLC Cash Flow From Operations vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Eaton Corp's current stock value. Our valuation model uses many indicators to compare Eaton Corp value to that of its competitors to determine the firm's financial worth. Eaton Corp PLC is number one stock in net income category among its peers. It also is number one stock in cash flow from operations category among its peers making about 1.13 of Cash Flow From Operations per Net Income. At this time, Eaton Corp's Net Income is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Eaton Corp's earnings, one of the primary drivers of an investment's value.Eaton Cash Flow From Operations vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Eaton Corp |
| = | 3.22 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes, and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investors or analysts to check on the quality of a company's earnings.
Eaton Corp |
| = | 3.62 B |
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about the company having enough liquid resources to meet current and long term debt obligations.
Eaton Cash Flow From Operations Comparison
Eaton Corp is currently under evaluation in cash flow from operations category among its peers.
Eaton Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Eaton Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Eaton Corp will eventually generate negative long term returns. The profitability progress is the general direction of Eaton Corp's change in net profit over the period of time. It can combine multiple indicators of Eaton Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.9 B | -4.1 B | |
| Operating Income | 3.9 B | 3 B | |
| Income Before Tax | 3.8 B | 2.7 B | |
| Total Other Income Expense Net | -106 M | -111.3 M | |
| Net Income | 3.2 B | 2.3 B | |
| Income Tax Expense | 604 M | 330.9 M | |
| Interest Income | 129.6 M | 166.9 M | |
| Net Income Applicable To Common Shares | 2.2 B | 1.8 B | |
| Change To Netincome | -224.2 M | -235.5 M |
Eaton Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Eaton Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Eaton Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Eaton Corp's important profitability drivers and their relationship over time.
Use Eaton Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Eaton Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eaton Corp will appreciate offsetting losses from the drop in the long position's value.Eaton Corp Pair Trading
Eaton Corp PLC Pair Trading Analysis
The ability to find closely correlated positions to Eaton Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eaton Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Eaton Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Eaton Corp PLC to buy it.
The correlation of Eaton Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Eaton Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eaton Corp PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Eaton Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Eaton Corp position
In addition to having Eaton Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Eaton Stock Analysis
When running Eaton Corp's price analysis, check to measure Eaton Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Eaton Corp is operating at the current time. Most of Eaton Corp's value examination focuses on studying past and present price action to predict the probability of Eaton Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eaton Corp's price. Additionally, you may evaluate how the addition of Eaton Corp to your portfolios can decrease your overall portfolio volatility.